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Dubai: Standard & Poor's Ratings Services yesterday said it had assigned its 'A' long-term and 'A-1' short-term foreign and local currency sovereign credit ratings to Ras Al Khaimah. The outlook is stable.
"The ratings on Ras Al Khaimah rest primarily on ongoing support from the federal government of the UAE and the likelihood of extraordinary support in the event of financial stress," S&P credit analyst Ben Faulks said. "The federal government, funded mostly by Abu Dhabi and to a lesser extent by Dubai, meets almost all the current expenditure costs and most of the capital expenses of the seven emirates that make up the UAE. In addition, the financial capacity of the UAE and the larger emirates, in particular Abu Dhabi, is ample to cover Ras Al Khaimah's modest liabilities."
The ratings are underpinned by the relatively strong wealth enjoyed by Ras Al Khaimah citizens, with GDP per capita approaching $16,000, in line with the 'A' median. Moreover, Ras Al Khaimah's growth prospects appear robust.
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